BASELINE ASSESSMENT REPORT

INTRODUCTION

Strategic Environmental Assessment of the

Hydropower Sector in Myanmar

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Cover photo credit: ICEM 2017

ACK NO W L E DG E ME NT S

The Strategic Environmental Assessment (SEA) for the Hydropower Sector in Myanmar

would not have been possible without the leadership of the Ministry of Natural Resources and

Environmental Conservation (MONREC) and Ministry of Electricity and Energy (MOEE),

with support from the Australian government. Myanmar government focal points for this

study including Daw Thandar Hlaing, U Htoo Aung Zaw, U Nay Lin Soe and U Sein Aung

Min played a critical role at all stages of the SEA process. U Hla Maung Thein, Daw Mi

Khaing, U Tint Lwin Oo and Dr. San Oo guided the work of the SEA and focal points. These

individuals provided technical inputs and facilitated working relations.

International Centre for Environmental Management (ICEM) and Myanmar Institute for

Integrated Development (MIID) prepared the SEA with IFC. ICEM’s technical team included

Jeremy Carew-Reid, Rory Hunter, Edvard Baardsen, Jens Grue Sjørslev, John Sawdon, Kyaw

Moe Aung, Lina Sein Myint, Lois Koehnken, Lwin Wai, Mai Ky Vinh, Peter-John Meynell,

Rick Gregory, Stephen Gray, Vuong Thu Huong, Win Myint, Yan Min Aung, and Yinn Mar

Swe Hlaing.

The IFC team guiding the SEA included Kate Lazarus, Pablo Cardinale, Matt Corbett, Naung

San Lin and Tiffany Noeske. Vikram Kumar, IFC Country Manager for Myanmar provided

valuable inputs. We also recognize the ongoing support of IFC’s Environmental and Social

Governance Department and Infrastructure Department, as well as the feedback and

collaboration received from colleagues at The World Bank.

We are thankful for the generous support from the Australian Government including John

Dore, Rachel Jolly, Nick Cumpston, Dominique Vigie, Tim Vistarini, Ounheun Saiyasith and

Thipphavone Chanthapaseuth.

We are grateful to the dedicated civil society organizations, NGOs, SEA Advisory and Expert

Groups, and the Hydropower Developers’ Working Group for contributing to this study and

working to advance sustainability in Myanmar’s hydropower sector.

i

AB B RE VI AT I ONS

AG Advisory Group

AIRBM Ayeyarwady Integrated River Basin Management

CDC City Development Committee

CDD City Development Committee

CDZ Central Dry Zone

CSO Civil Society Organization

DHPI Department of Hydropower Implementation

DHPP Department of Hydropower Planning

DMH Department of Meteorology and Hydrology

DWIR Directorate of Water Resources and Improvement of River Systems

E&S Environmental and Social

ECC Environmental Compliance Certificate

ECD Environmental Conservation Department

EGs Expert Technical Groups

EIA Environmental Impact Assessment

EMP Environmental Management Plan

EPC Electric Power Corporation

ESB Electricity Supply Board

ESIA Environmental and Social Impact Assessment

FESR Framework for Economic and Social Reform

GAD General Administration Department

GIS Geographical Information System

GMS Greater Mekong Sub-region

GOM Government of Myanmar

HPP Hydropower Plant

IEE Initial Environmental Examination

IFC International Finance Corporation

IWRM Integrated Water Resources Management

IWT Inland Water Transport

JICA Japan International Cooperation Agency

KBA Key Biodiversity Area

MEI Myanmar Environment Institute

MEPE Myanmar Electric Power Enterprise

MOALI Ministry of Agriculture, Livestock and Irrigation

MOC Ministry of Construction

MoE Ministry of Energy

MOECAF Ministry of Environmental Conservation and Forestry

MOEE Ministry of Electricity and Energy

MOEP Ministry of Electric Power

MOF Ministry of Forestry

MOFA Ministry of Foreign Affairs

MOI Ministry of Industry

MONREC Ministry of Natural Resources and Environmental Conservation

MOTC Ministry of Transport and Communication

MW Megawatts

NCDP National Comprehensive Development Pan

NCEA National Commission for Environmental Affairs

NECCCCC National Environmental Conservation and Climate Change Central Committee

NEMC National Energy Management Committee

NEMP National Electricity Master Plan

ii

NEP National Electrification Plan

NGO Non-government Organization

NLD National League for Democracy

NWP National Water Resources Policy

NWRC National Water Resource Committee

PA Protected Area

PDR People’s Democratic Republic

PFE Permanent Forest Estate

PRC People’s Republic of China

RBO River Basin Organization

SEA Strategic Environmental Assessment

SEI Stockholm Environment Institute

SEP Stakeholder Engagement Plan

SOBA State of the Basin Assessment

TOR Terms of Reference

UN United Nations

USDP Union Solidarity and Development Party

WRUD Water Resources Utilization Department

WWF World Wildlife Fund

iii

TABLE OF CONTENTS

ABBREVIATIONS ...................................................................................................................... I

TABLE OF CONTENTS ........................................................................................................... III

LIST OF TABLES ...................................................................................................................... V

LIST OF FIGURES .................................................................................................................... V

TERMINOLOGY ....................................................................................................................... 1

1 BACKGROUND ............................................................................................................ 1

1.1 Structure of the SEA reports ........................................................................................... 3

2 PURPOSE, VISION AND SCOPE OF THE SEA........................................................... 4

2.1 SEA Purpose ................................................................................................................... 4

2.2 SEA Vision and Objectives ............................................................................................. 4

2.3 Scope of the SEA ............................................................................................................ 5

2.4 Significant issues and themes ......................................................................................... 5

2.5 SEA Relationship with other levels of hydropower planning ......................................... 7

2.6 Information limitations ................................................................................................... 7

3 METHODOLOGY ......................................................................................................... 8

3.1 Issue scoping ................................................................................................................... 8

3.2 Hydropower Project (HPP) GIS Database ...................................................................... 9

3.3 Baseline evaluation ......................................................................................................... 9

3.4 Project sustainability analysis and impact assessment .................................................... 9

3.5 Sustainable development framework .............................................................................. 9

3.6 Recommendations on policies, plans, procedures and studies to implement the

framework .................................................................................................................................. 9

4 RIVER BASINS ........................................................................................................... 10

4.1 Ayeyarwady Basin ........................................................................................................ 13

4.2 Thanlwin Basin ............................................................................................................. 17

4.3 Mekong Basin ............................................................................................................... 19

4.4 Sittaung Basin ............................................................................................................... 20

4.5 Bago and Myit Ma Hka Basin ....................................................................................... 22

4.6 Bilin River Basin ........................................................................................................... 23

4.7 Tanintharyi Coastal Basin ............................................................................................. 25

4.8 Rakhine Coastal Basin .................................................................................................. 26

5 STAKEHOLDER ENGAGEMENT ............................................................................. 28

5.1 Stakeholder engagement plan (SEP) ............................................................................. 28

5.2 Stakeholder groups ........................................................................................................ 28

5.3 Stakeholder engagement activities ................................................................................ 29

iv

5.4 Regional River Basin Consultations ............................................................................. 29

5.5 Baseline assessment workshops (summary) ................................................................. 31

5.6 Consultation with local communities affected by existing hydropower ....................... 32

5.7 Advisory Group (AG) and Expert Technical Groups (EGs) ......................................... 32

6 LEGAL AND INSTITUTIONAL FRAMEWORK ....................................................... 34

6.1 Legal framework ........................................................................................................... 34

6.2 National Committees..................................................................................................... 34

6.3 Sub-national governance ............................................................................................... 35

6.4 Electricity and Energy ................................................................................................... 35

6.5 Control of Natural Resources and Hydropower ............................................................ 36

6.6 Environment .................................................................................................................. 36

6.7 Water Resources ........................................................................................................... 39

6.8 Land Use Policy ............................................................................................................ 41

6.9 National Planning Instruments ...................................................................................... 41

6.10 Agriculture, Fisheries and Forestry ........................................................................... 42

7 STRUCTURE OF THE BASELINE ASSESSMENT REPORT ................................... 44

v

LIST OF TABLES

Table 2.1: Major potential environmental and social impacts of hydropower ........................................ 5

Table 4.1: Major river basins in Myanmar ........................................................................................... 11

Table 4.2: Summary of Ayeyarwady sub-basins .................................................................................. 15

Table 4.3: Summary of Chindwin sub-basins ....................................................................................... 17

Table 4.4: Summary of Thanlwin sub-basins ....................................................................................... 19

Table 4.5: Summary of Mekong sub-basins ......................................................................................... 19

Table 4.6: Summary of Sittaung sub-basins ......................................................................................... 22

Table 4.7: Summary of Bago and Myit Mo Hka .................................................................................. 22

Table 4.8: Summary of Bilin River Basin ............................................................................................. 24

Table 4.9: Summary of Thanintharyi sub-basins .................................................................................. 26

Table 4.10: Summary of Rakhine coastal basins .................................................................................. 26

Table 5.1: Summary of frequently listed issues in regional river basin consultations .......................... 29

Table 5.2: Summary of frequently listed opportunities in the regional river basin consultations ........ 30

Table 5.3: Priority SEA themes identified in multi-stakeholder workshops (% of participants) .......... 31

Table 6.1: Laws relating to hydropower development .......................................................................... 35

Table 6.2: EIA/IEE requirements for hydropower projects .................................................................. 37

Table 6.3: Summary of department and functions for IWRM .............................................................. 39

Table 6.4: NCDP vision, long-term goals and development outcomes ................................................ 41

Table 6.5: Planned (2017-2018) and actual GDP growth (2016-2017) for key sectors in the SEA ..... 42

LIST OF FIGURES

Figure 1.1: Status of hydropower development in Myanmar ................................................................. 2

Figure 3.1: SEA implementation methodology and timing .................................................................... 8

Figure 4.1: Main river basins in Myanmar ........................................................................................... 10

Figure 4.2: 58 sub-basins in Myanmar .................................................................................................. 12

Figure 4.3: Sub-basins in the Ayeyarwady Basin ................................................................................. 14

Figure 4.4: Chindwin sub-basins .......................................................................................................... 16

Figure 4.5: Thanlwin sub-basins ........................................................................................................... 18

Figure 4.6: Mekong sub-basins ............................................................................................................. 20

Figure 4.7: Sittaung sub-basins ............................................................................................................. 21

Figure 4.8: Bago and Myit Mo Kha Basin ............................................................................................ 23

Figure 4.9: Bilin River Basin ................................................................................................................ 24

Figure 4.10: Tanintharyi sub-basins...................................................................................................... 25

Figure 4.11: Rakhine sub-basins ........................................................................................................... 27

Figure 6.1: Law, rules, procedures and guidelines under the Environmental Conservation Law 2012 34

Figure 6.2: Institutional arrangements for environmental conservation ............................................... 37

1

TERMINOLOGY

River Basin: area of land from which all surface run-off flows through a sequence of streams, rivers

and, possibly, lakes into the sea at a single river mouth, estuary or delta.

Sub-basin: is an area of land where a basin forms within a larger river basin

Watershed: used to describe a smaller area of land that drains to a smaller stream, river, lake or

wetland. Often watersheds are subdivided into five different basic units based on the size of the

watershed: catchment, sub-watershed, watershed, sub-basin and basin (from small to large).

1 BACKGROUND

Myanmar, the largest country in Southeast Asia, has the least developed economy in the region

(UNDP 2013)1 despite having some abundant natural resources and a relatively low population

density. The current level of development is illustrated by Myanmar’s substantial shortfall in energy

supply, with only 33% of households connected to grid electricity supply.

Recognising that access to electricity is an important pillar in raising livelihoods (particularly in rural

areas where 70% of Myanmar’s poor live) and achieving broad economic development, the

Government of Myanmar (GoM) aims to rapidly increase power generation and electrification across

the country over the next 10-20 years to provide affordable and reliable energy. Key sector targets

include increasing national generation capacity by 500-1,000 MW per year over the next 10 years to

reach 16,665 MW of installed capacity, and increasing the electrification rate to 75% by 2021/2022,

then to 100% by 2030, and increasing increase energy exports to increase foreign exchange earnings.

To meet these targets the government is considering a mix of power generation options, including gas,

hydropower and other renewable energy alternatives. Given that the country is rich in hydropower

resources, being home to major river basins and high annual rainfall in most areas, hydropower looms

as an important contributor to the provision of affordable electricity. Almost the entire Ayeyarwady

River Basin (91%, covering ~372,907km2) lies within Myanmar, as well as close to half of the

Thanlwin basin (42%, covering ~127,745km2) and a small area of the Mekong basin (2.7%, covering

~ 22,070 km2). In addition, the Sittaung River Basin and the Rakhine and Tanintharyi coastal basins

are other notable resources.

But these substantial aquatic resources provide a range of essential ecosystem services that will be lost

or degraded by inappropriate large-scale hydropower development, including maintaining river

ecological and geomorphic processes, and providing important livelihood resources, therefore

hydropower development must be sustainable.

Hydropower development is at an early stage in Myanmar, with 29 hydropower projects (HPPs)

greater than 10 MW capacity in operation, totalling 3,298 MW installed capacity, while an additional

six HPPs are under construction with an installed capacity of 1,564 MW, the largest being the 1,050

MW Shweli 3 hydropower plant in the Ayeyarwady Basin (Figure 1.1). In contrast, GoM has received

proposals for the development of a further 51 hydropower projects totalling 42,968 MW. There are

also an additional 18 sites have been identified for potential hydropower development by

state/regional governments totalling 994 MW. The sector is moving towards larger projects and away

from Government-dominated development towards being driven by private enterprise.

1 UNDP. (2013). Accelerating Energy Access for All in Myanmar. United Nations Development Programme, Yangon, Myanmar

2

Figure 1.1: Status of hydropower development in Myanmar

Limited river basin changes have resulted from hydropower development to date across the country

due to limited installed capacity across a large area in four river basins, with minimal hydrological,

geomorphic, ecological and socio-economic impacts from medium to large scale hydropower

development, but this will change if business-as-usual (BAU) development occurs. The addition of up

to 48,000 MW of medium to large scale HPPs under BAU development over the next 30 years will

entail most major rivers being developed, resulting in river fragmentation, substantial changes to river

3

processes and functions, and the loss of unique environmental and social values. These adverse

impacts have been recognised, with vocal opposition to some major planned projects leading the

government to suspend three major HPPs2 on environmental and social grounds.

No national or basin level policies or plans exist to guide sustainable hydropower based on integrated

water, land, ecosystem and socio-economic objectives. In the absence of these plans the sector is

being planned in the traditional manner - on an opportunistic, individual project basis focused on

project economic return and engineering feasibility. This project-centric planning model locks in the

project site at the pre-feasibility stage with limited consideration of site impacts and little to no

consideration of the cumulative impacts of multiple projects on sub-basins. This results in most larger

rivers being modified by hydropower projects, with limited reservation of large rivers in a natural

state to maintain riverine processes and unique and representative values.

It is imperative that project siting is done well as good site selection avoids major impacts on river

flows, geomorphology, aquatic ecology and livelihoods, particularly relating to river connectivity and

cumulative impacts, that last for the life of the project, which is normally over 100 years.

In response to the increasing challenges of hydropower planning in Myanmar, and recognising the

opportunity to develop a sustainable hydropower sector, GoM, through a partnership between the

Ministry of Electricity and Energy (MOEE) and Ministry of Natural Resources and Environmental

Conservation (MONREC), with support from the International Finance Corporation (IFC) and the

Australian Government, conducted this Strategic Environmental Assessment (SEA) of the national

hydropower sector as the first stage in basin-wide planning.

Myanmar is in a unique position of being able to develop hydropower in an integrated and sustainable

manner before significant impacts occur to river systems, balancing the generation of substantial

renewable energy to drive the economy and improve livelihoods with the retention of important bio-

physical processes and values and socio-economic benefits for current and future generations.

1.1 Structure of the SEA reports

The SEA consists of the following outputs:

Scoping and baseline assessment:

1. Stakeholder Engagement Plan (SEP)

2. Regional River Basin Report- Key Findings;

3. Baseline Assessment Report;

Sustainability analysis:

4. Volume I- Evaluation of sub-basins- for 58 sub-basins in Myanmar

5. Volume II- Project sustainability analysis- for all planned

6. Sustainability Analysis Report

7. Hydropower project GIS database

Mitigations and recommendations:

8. Final SEA Report

2 The Myitsone HPP (6,000 MW) on the Ayeyarwady River, Tamanthi HPP (1,200 MW) on the Chindwin River and the Wei Gyi HPP

(4,540 MW) on the Thanlwin River have been suspended by GoM after environmental groups and civil society called on the government to

halt hydropower projects on the mainstems of these major rivers, citing potential negative environmental and social impacts. A Presidential Order was issued on 12 August 2016 to form a commission to review the Myitsone HPP and other projects planned in the upper

Ayeyarwady River.

4

2 PURPOSE, VISION AND SCOPE OF THE SEA

2.1 SEA Purpose

The primary purpose of the SEA is to provide the first edition of the sustainable development

planning framework for hydropower in each major river basin in Myanmar, to improve project siting

from the outset by considering site and cumulative environmental and socio-economic impacts at sub-

basin and basin levels. This foundation planning tool seeks to achieve a balance between energy

development and the protection and maintenance of important processes and values in each basin.

Adherence to the framework aims to deliver large scale affordable electricity at a low E&S ‘cost’ by:

• maintaining significant river processes and functions, ecosystem services and biodiversity;

• maintaining unique and representative values; and

• avoiding major livelihood impacts and understanding conflict risks.

The SEA does not seek to provide a definitive, one-off plan for hydropower development over the

next 30 years because (i) the baseline information available to inform planning at this time is limited

in a number of key areas, and (ii) complex trade-offs will need to be made between protection of the

environment and hydropower development. Instead it provides the initial (‘first edition’) planning

framework and a clear roadmap of actions to implement and progressively improve future

hydropower and related river basin planning. In doing so, integrated basin-wide planning is

immediately brought into the front end of HPP siting and decision making to develop a more

sustainable sector. This is essential for contending with the number and scale of proposed projects

rather than letting BAU development continue, whilst providing stakeholders with some essential

base-level planning information.

The framework is supported by:

• a clear roadmap of policies, plans, and studies required to implement and periodically revise

the framework, including the collection of key information to fill data gaps;

• a national GIS database of existing and proposed hydropower projects over 10 MW capacity;

• a baseline description and GIS layers of the main environmental, social and conflict features

in each sub-basin that have the potential to be impacted on by hydropower projects (based on

best available information);

• a rating of each proposed project based on major likely environmental and social impacts; and

• a summary description of BAU hydropower development impacts on sub-basins and basins,

providing direction for the sustainable development framework.

2.2 SEA Vision and Objectives

The SEA vision for hydropower development in Myanmar is:

Sustainable hydropower development based on integrated water, land and ecosystem

planning, balancing a range of natural resource uses and priorities to achieve economic

development, environmental sustainability and social equity.

This translates to maintaining healthy river basins, where important natural basin processes are

maintained (seasonal river flows, basin geomorphological processes, aquatic ecosystems and major

river connectivity), and unique and representative values are retained, with the level and type of

hydropower development kept within the sustainable limit or ‘carrying capacity’ of each basin, whilst

delivering economic benefits from the supply of affordable and reliable energy.

This vision is supported by the SEA objectives of:

i) enhancing the understanding of and dialogue between decision makers and other stakeholders

about the range of natural and socio-economic values and stakeholder priorities that need to

be considered in formulating the sustainable hydropower development pathway;

ii) defining a sustainable development pathway (framework) for hydropower in Myanmar over

the next 30 years that:

5

• accounts for (i) scientific and (ii) stakeholder values;

• achieves the dual aims of (i) sustainable use and protection of natural resources and

ecosystems, and (ii) long-term economic development;

iii) providing a set of key actions (policies, plans and studies) required to implement and

periodically update the sustainable development pathway; and

iv) achieving broad consensus on the sustainable development pathway.

The SEA is founded on the understanding that hydropower generation and environmental and social

protection can co-exist when planned in an integrated and balanced manner.

2.3 Scope of the SEA

The SEA is a macro level assessment, providing upper level planning guidance. As such it is focused

on priority environmental and socio-economic values and issues. These issues relate to significant

long term and broad scale impacts that need to be considered and avoided or minimised where

possible when initially siting projects.

The SEA covers the whole of Myanmar, divided eight major river and coastal basins that are each

addressed separately (Ayeyarwady, Thanlwin, Mekong, Sittaung, Bago & Myit Mo Hka, Bilin basins

and the Tanintharyi and Rakhine coastal basins. Each basin has been divided into sub-basins to enable

an adequate level of analysis and provide appropriate planning and management units.

The SEA considers projects with 10 MW installed capacity and above, thereby capturing all medium

and large projects. A 10 MW3 project was selected as the cut-off as the minimum size, with projects

equal to and above this capacity usually creating notable impacts, being located on larger rivers,

having larger dams and reservoirs, and creating greater flow diversion. While some projects with less

than 10 MW capacity may have a greater environmental and social impact than larger projects, small

sized projects were excluded from SEA analysis to keep the focus on significant basin impacts. In

addition, large scale irrigation projects were also analysed.

The temporal boundary applied to the SEA is the expected 30 year rapid development phase of the

hydropower sector, when it is assumed that up to 48,000 MW of capacity may be installed. Whilst the

SEA focuses on improving planning over this development horizon it recognises that the impacts of

medium to large scale hydropower projects occur the lifetime of these major capital infrastructure

developments, which will generally be in excess of 100 years.

2.4 Significant issues and themes

The SEA focuses on significant environmental and socio-economic issues directly related to major

hydropower impacts as these issues are critical in the avoidance of major impacts when siting

projects. The major environmental and social impacts of medium to large scale hydropower are

summarised in Table 2.1.

Table 2.1: Major potential environmental and social impacts of hydropower

Factor Potential Impact Cause

Environmental River hydrology changes • Daily flow changes from peaking power releases

• Seasonal flow changes from storage project releases

• Downstream river dewatering between the dam and

powerhouse

River geomorphology

changes/degradation • Reduction in downstream sediment load due to reservoir

trapping

• Increased downstream river bank and bed erosion due to

reduced sediment load and ‘sediment hungry water’

• Occasional release of large volumes of sediment when

periodically flushing the desanding basin/pond/reservoir

3 The upper limit of the United Nations Industrial Development Organisation (UNIDO) definition of small hydro.

6

Factor Potential Impact Cause

Water quality

changes/deterioration

• Reduced water quality from the seasonal detention of water

in storage project reservoirs (e.g. changes in temperature,

dissolved oxygen content and nutrient levels)

• Periodic release of sediment from a desanding

basin/pond/reservoir

Aquatic

ecosystem/biodiversity

degradation/loss

• Aquatic ecosystem degradation/loss of aquatic biodiversity

from river flow changes, alteration of water quality, and

creation of impassable obstacles for fish migration

Terrestrial

ecosystem/biodiversity

degradation/loss

• Direct loss of terrestrial biodiversity on the project site,

primarily from the reservoir area

• Loss of terrestrial habitat connectivity due to the reservoir

• Indirect loss from induced resource harvesting due to

improved access into the area

Socio-

economic

Land acquisition and

resettlement, loss of private

agricultural/forestry land

• Acquisition of private land and assets

• Physical displacement/resettlement of households

• Conversion of existing productive land uses (e.g.

agriculture, forestry) to hydropower facilities

Loss of or reduction in

communal natural resources

supporting livelihoods or

cultural/religious practices

• Removal of forests, grassland, fishing, aquaculture, water

supply for irrigation and domestic consumption, etc.

• Disruption of the natural river flow regime used for

religious, cultural or recreational purposes

Loss of important

natural/cultural

heritage/religious sites

• Inundation or removal of unique sites

Access/transport restrictions • Curtailing river transport and cross-river access

Community safety • Safety risks associated with:

- the sudden release of a large volume flow (generation

flow and/or spill flow)

- structural failure/dam break resulting in the sudden

release of a large volume of stored water (although a

highly unlikely event)

Impacts on indigenous

peoples

• Potential differential impacts on indigenous peoples

livelihoods and physical displacement

Cumulative

impact

Cumulative sub-basin and

basin impacts • The combined impact of multiple water resource

developments along a river or in a sub-basin

In addition, conflict was recognised as an important feature in Myanmar that had to be recognised as

both a major development constraint and potential impact-related issue when planning sustainable

hydropower development. Seven strategic themes emerged from these impact issues in consultation

with MOEE, MONREC and a broad range of stakeholders, forming the structure of the baseline

assessment:

1. Hydropower and hydrology;

2. Geomorphology and sediment transport;

3. Aquatic ecology and fisheries;

4. Terrestrial biodiversity;

5. Economic development and land use;

6. Social and livelihoods; and

7. Conflict.

The Draft Baseline Assessment Report was released as separate chapters for public for review and

comment from 8th June to 20th July 2017. The SEA presents a baseline picture for each theme in

Chapters 2-8, described for each basin.

7

2.5 SEA Relationship with other levels of hydropower planning

The SEA is the first level in a three-tiered integrated planning regime proposed for medium to large

scale hydropower. The SEA will be successively supported by two more detailed and location-

specific planning tools:

• Cumulative Impact Assessment (CIA); and

• Environmental and Social Impact Assessment (ESIA) or Initial Environmental Examination

(IEE).

A CIA is recommended to be conducted in sub-basins and watersheds where multiple major water

resource development projects (hydropower and/or irrigation) are proposed that are likely to have a

combined effect on significant environmental and socio-economic values. The CIA provides the

baseline context of the combined impact zone, requiring baseline data to be collected on key features

where existing information is deficient, and assesses the cumulative impacts of these projects on bio-

physical and socio-economic conditions. The CIA is designed to provide a good indication on the

level of development / changes to baseline conditions that is sustainable, relating to the number, type

and scale of HPPs.

The final and most detailed level of impact assessment is the project-specific ESIA or IEE. In

accordance with the Myanmar EIA Procedures (2015), all development projects have to undergo an

impact assessment, either in the form of a full EIA or a simpler IEE. Hydropower projects that have

an installed capacity equal to or greater than 15 MW, or a reservoir volume equal to or greater than 20

million m3, or a reservoir area equal to or greater than 400 ha, are required to prepare an EIA. For

other HPPs from 1 MW to less than 15 MW capacity, with a reservoir volume below 20 million m3

and a reservoir area below 400 ha, an IEE is required.

2.6 Information limitations

The SEA has been prepared with limited data in a number of key areas, including river hydrology and

geomorphology, riverine ecosystems and aquatic species, and socio-economic conditions and

livelihoods. In the absence of detailed information indicative or proxy information has been used to

assess these features, or where the best available information was deemed inadequate or not

sufficiently uniform the feature was not evaluated.

The sustainable development framework for hydropower development will be periodically revised as

key information becomes available. In the short to medium term more detailed information and data

will be obtained through a combination of studies that are underway or about to commence, studies

that have been identified in the SEA as being required to effectively implement and periodically

update the SEA, the monitoring of operational hydropower projects, and feasibility studies and

assessments undertaken by hydropower developers.

Key studies that are underway that will help to inform the first revision of the sustainable

development framework include the Ayeyarwady Integrated River Basin Management Project

(AIRBM) being undertaken by the National Water Resources Committee with support from the World

Bank, and a number of research projects supported by the Water, Land and Ecosystems (WLE)

Initiative of the Consultative Group for International Agricultural Research (CGIAR).

8

3 METHODOLOGY

The SEA methodology was designed as an open process, canvassing the broad views of stakeholders

and specialists, obtaining the best available objective information on hydropower projects, natural

resources and socio-economic conditions from a range of sources, building consensus on the need for

and direction of sustainable hydropower development, and providing a well reasoned sustainable

development framework. The main steps, illustrated in (Figure 3.1), were:

• Issue scoping;

• Hydropower project GIS database preparation;

• Environmental and socio-economic baseline evaluation;

• BAU sub-basin and project sustainability analysis;

• Sustainable development framework setting; and

• Recommendations on policies, procedures, plans and studies to implement the framework.

Each step will be underpinned by broad consultation with a full range of stakeholders.

Figure 3.1: SEA implementation methodology and timing

3.1 Issue scoping

Issue scoping involved a series of stakeholder engagement activities with government, civil society

organisations (CSOs) and hydropower companies, including; multi-stakeholder workshops, regional

river basin consultations, information sessions, direct discussions, and Advisory Group (AG) and

technical Expert Group (EG) meetings. These consultations canvassed the views of experts to identify

important environmental and socio-economic issues for the development and management of the river

basins, as detailed in Section 1.5 of this report.

• Key issues and concerns were identified that stakeholders consider strategically important for

river basin development, protection and management in Myanmar. The issues were then

consolidated into seven strategic environmental and socio-economic themes for analysis.

Sustainabledevelopmentpathway

Regionalriverbasins

DraftSEAReport

MONTH

Oct/Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

SustainabilityanalysisMitigationsandrecommendationsScoping&Baselineassessment

Stakeholderengagementplan

Sustainabledevelopmentobjectives

AG,EG&HDWG

Baselineassessmentreport

GISandspatiallayers

Stakeholderworkshops

Consultations

Categorizationofpipeline

HPP

Sensitivityratingsforsub-basins

ProjectSustainabilityAnalysisReport

Trendanalysis

Spatialanalysis

Pipelinehydropowerprojects(HPP)

ProjectGISdatabase

DefineBAUhydropower

case

Impactassessmentworkshop

FinalSEAreport

Finalstakeholderworkshops

Avoidance

Enhancements

Mitigations

Furtherstudies

Capacitybuilding

Policyrecommendations

Next steps

KeyE&Sissuesandstrategicthemes

Localcommunities

9

3.2 Hydropower Project (HPP) GIS Database

A national GIS database of existing and proposed hydropower projects over 10 MW capacity was

developed to take stock of the status of hydropower development in each basin and sub-basin. The

database provides the location of each project and a summary of key project information, including

• Ownership and development status: foreign or local investment, stage of development, date

EIA or feasibility was submitted, and year the project will be commissioned;

• Key technical data: installed capacity (MW), type of project (e.g. run-of-river, storage,

multi-purpose), annual generation (GWh/year), dam height, reservoir storage volume and

surface area, average water retention time, and use of power (domestic / export %).

3.3 Baseline evaluation

Baseline information and spatial data was compiled to evaluate the existing conditions and trends in

each of the eight major river basins. Where appropriate, GIS layers of existing conditions were

prepared, and the basins divided into a total of 58 sub-basins for ease of analysis. Only key

biophysical and socio-economic ‘values’ were analysed, relating to those features likely to be

significantly impacted by hydropower development. Environmental and social ratings were developed

for each sub-basin under the strategic themes of:

1. Geomorphology;

2. Aquatic ecology and fisheries;

3. Terrestrial biodiversity;

4. Social and livelihoods; and

5. Conflict.

3.4 Project sustainability analysis and impact assessment

A rapid assessment (or screening) of all proposed hydropower projects will be undertaken based on

key impact indicators for each environmental and socio-economic theme. The main design features of

each HPP will then be overlaid onto the baseline biophysical and socio-economic ‘values’, with risk

ratings for each theme calculated for project comparison purposes. Cumulative impacts of these BAU

projects will be assessed at the sub-basin and basin levels, providing direction for sustainable

hydropower development over the next 30+ years.

3.5 Sustainable development framework

A sustainable development framework (SDF) will be developed to balance hydropower development

with the maintenance and protection of important environmental and social values. It will provide a

whole-of-basin planning framework for riverine resources within each basin, primarily based on sub-

basin analysis and trade-offs that aim to achieve 100+ year outcomes.

3.6 Recommendations on policies, plans, procedures and studies to

implement the framework

A program of key actions (policies, procedures, plans, studies and monitoring) will be prepared to

implement and periodically update the SDF. This will include recommendations on policies and

procedures for government implementation of the SDF, obtaining critical baseline data to fill gaps and

improve planning at basin and target sub-basin levels, and establishing a timetable for periodic SDF

revision based on the new information obtained. These actions will include coordination between

multiple sectors to avoid parallel planning, as well as institutional capacity enhancement.

10

4 RIVER BASINS

Myanmar contains six discrete river basins and two coastal areas that consist of a collection of small

watersheds draining directly into the sea that are referred to as coastal basins for analysis purposes

(Figure 4.1). The Ayeyarwady, Thanlwin and Mekong are the three major transboundary basins in

Myanmar, covering a combined 77.8% of the country. The Surma-Meghna Basin, which flows

through India and Bangladesh also covers a small area (~791.64km2) in Myanmar. The smaller

Sittaung, Bago & Myit Mo Kha and Bilin river basins are wholly contained within Myanmar and the

Tanintharyi and Rakhine coastal basins each consist of a collection of smaller watersheds.

Figure 4.1: Main river basins in Myanmar

11

The total basin area, river length and states/regions of the eight major drainage basins is summarized

below in in Table 4.1.

Table 4.1: Major river basins in Myanmar

Basin

Total

basin area

(km2)

Basin area

within

Myanmar

(%)

Basin area in

other

countries

(%)

Area of

Myanmar

(%)

Total

river

length

(km)

State/regions

Ayeyarwady 412,500

91

(~372,907

km2)

PRC - 5

India - 4 55.5 2170

Ayeyarwady, Bago,

Chin, Kachin,

Magway, Mandalay,

Naypyitaw, Rakhine,

Sagaing, Shan,

Yangon

Thanlwin 284,200

42

(~127,745

km2)

PRC - 53

Thailand - 5 19 2400

Mon, Bago, Kachin,

Kayah, Kayin,

Mandalay, Shan

Mekong

824,000

2.7

(~22,070

km2)

PRC - 21

Lao - 24

Thailand - 23

Cambodia - 20

Vietnam - 8

3.3 3469

Shan

Sittaung 34,950 100 - 5.2 450

Mon, Bago, Kayah,

Kayin, Magway,

Mandalay,

Naypyitaw, Shan

Bago &

Myit Mo

Kha

10,050 100 - 1.5 220

Mon, Bago, Yangon

Bilin 3056.37

100 0.46 160

Bago, Kayin, Mon

Tanintharyi 43,800 00 - 6.8 400 Mon, Kayin,

Tanintharyi

Rakhine 53,860 100 - 8.1 280

Ayeyarwady, Bago,

Chin, Magway,

Rakhine

The river basins are too large an area to assess the sustainability of planned projects, therefore the

basins were divided into 58 sub-basins for analysis in the SEA (Figure 4.2).

12

Figure 4.2: 58 sub-basins in Myanmar

The following sections provide an overview of the major river basins and sub-basins in Myanmar.

13

4.1 Ayeyarwady Basin

The transboundary Ayeyarwady basin covers around 412,500km2, of which 91% (~372,907km2) lies

within Myanmar, around 5% (~21,400 km2) is in the People’s Republic of China (PRC) (mostly

Yunnan), and 4% (~17,400 km2) is situated in India (Manipur and Nagaland).

The basin covers approximately 55.5% of Myanmar’s land area with major tributaries within

Myanmar being the Mali, N’mai, Chindwin, Shweli, Dapein Mu and Mytinge rivers. The 2,170 km

long Ayeyarwady River (commencing at the confluence of the Mali and N’mai rivers) is commonly

referred to as having three regions: 1) Chindwin River, 2) Upper Ayeyarwady, and, 3) Lower

Ayeyarwady, which includes the Delta area.

The headwaters of the basin flow from mountains and hills along the Myanmar-PRC border, including

an area within PRC, where elevations exceed 5000m asl. Ayeyarwady River flows are highly

seasonal, with 90% of yearly discharge occurring during the monsoon season (mid May to mid

November).

The sub-basins within the Ayeyarwady basins, as defined for this SEA, are shown in Figure 4.3,

further information on area (km2), population and states/regions for each sub-basin is also

summarised below in Table 4.2. The area and population in the sub-basins are estimated using GIS

analysis.

14

Figure 4.3: Sub-basins in the Ayeyarwady Basin

15

Table 4.2: Summary of Ayeyarwady sub-basins

Sub-basin Area

Population State/Region km2 % of basin

Delta 53084 19.25 11,815,891 Ayeyarwady, Bago, Magway, Rakhine

Lower Ayeyarwady 37114 13.46 3,563,016 Bago, Chin, Magway, Mandalay, Nay Pyi

Taw, Rakhine, Sagaing

Lower Myitnge 8070 2.93 1,221,902 Mandalay, Shan

Ma Gyi Chaung 4340 1.57 167,149 Mandalay, Shan

Mali Creek 719 0.26 N/A Kachin

Dapein 1236 0.45 62,914 Kachin

Mali Hka 23287 8.44 74,211 Kachin

Middle Ayeyarwady

mainstem 17940 6.51 3,344,726

Kachin, Magway, Mandalay, Sagaing,

Shan

Mone Chaung 5974 2.17 232,711 Chin, Magway, Rakhine

Mu 19708 7.15 1,953,363 Mandalay, Sagaing

Namtabak 718 0.26 N/A Kachin

Nmae Hka 17501 6.35 25,296 Kachin

Shweli 13141 4.77 328,567 Kachin, Mandalay, Sagaing, Shan

Tributary with Indawgyi

Lake catchment 9357 3.39 673,608 Kachin, Sagaing

Upper Ayeyarwady

mainstem 17939 6.51 894,488 Kachin, Sagaing, Shan

Upper Mytinge 22448 8.14 718,996 Shan

Zawgyi/ Myogyi 16327 5.92 2,099,186 Magway, Mandalay, Sagaing

Mindon HPP 4445 1.61 205,439 Magway, Rakhine

Naw Chang Hka 2401 0.87 20,039 Kachin

The Ayeyarwady Basin is the largest and most economically significant river basin in Myanmar.

Approximately 34.3 million (66% of Myanmar’s population) live in the Ayeyarwady Basin (2013).

Around 1.9 million people live within the Ayeyarwady Basin in Yunnan and 2.8 million people in

India, mainly in Manipur. Population density across the basin varies from just 18 people/km2 in

Kachin State, to around 60 people/km2 in the Mandalay region, and more than 180 people/km2 in the

Ayeyarwady region (Delta). High population densities are concentrated around the major cities and

plains of the central zone. Almost half (45%) of the basin population in Myanmar live in the central

dry zone regions (Mandalay, Sagaing and Magway) which make up 40% of the basin. The basin

crosses the states/regions of Ayeyarwady, Bago, Chin, Kachin, Magway, Mandalay, Naypyitaw,

Rakhine, Sagaing, Shan and Yangon.

4.1.1 Chindwin sub-basins

The Chindwin River is considered the main tributary of the Ayeyarwady River and within Myanmar

and comprises around 26% (~97156.69km2) of the Basin, or around 8.6% of total land area in

Myanmar. There are eight Chindwin sub-basins that will be used for analysis in the SEA and these are

detailed below in Figure 4.4 and Table 4.3.

16

Figure 4.4: Chindwin sub-basins

17

Table 4.3: Summary of Chindwin sub-basins

Sub-basin Area

Population State/Region km2 % of basin

Chindwin Headwater 1 5977 6.15 51,980 Kachin, Sagaing

Chindwin Headwater 2 7813 8.04 60,019 Kachin, Sagaing

Lower Chindwin 16621 17.11 3,563,016 Magway, Mandalay, Sagaing

Manipur 8972 9.23 516,151 Chin, Sagaing

Middle Chindwin 14376 14.80 278,877 Chin, Sagaing

Myittha 8644 8.90 230,513 Chin, Magway, Sagaing

Upper Chindwin 23314 24.00 112,506 Kachin, Sagaing

Uyu 11440 11.77 370,874 Kachin, Sagaing

4.2 Thanlwin Basin

The transboundary Nu-Thanlwin basin covers approximately 284,200 km2, of which approximately

the upper 53% (~150,600 km2) lies within the PRC, 42% in Myanmar and 5% in Thailand. The Nu-

Thanlwin River, referred to as the Nu (Upper Salween) in China and the Thanlwin (Lower Salween)

in Myanmar and Thailand, is the second longest river in Southeast Asia (after the Mekong). The basin

is narrow and mountainous, flowing 2,400 km from 4,000 m asl on the Tibetan plateau eastwards then

south through Yunnan in the PRC, entering Myanmar in the northeast and flowing south into the Bay

of Martaban.

The basin covers 19% of Myanmar’s total land area, with major tributaries within Myanmar being the

Nam Pang and the Nam Pilu/Nam Pawn and the Moei River, which flows north out of Thailand. A

130 km section of the river forms the border between Myanmar and Thailand. The base river flow is

provided by glaciers in the upper reaches. The basin discharges an average of 4,978 m3/s, with 89% of

flows occurring during the monsoon season and 11% during the dry season. The 11 sub-basins that

will be used for analysis in the SEA and these are detailed below in Figure 4.5 and Table 4.4.

18

Figure 4.5: Thanlwin sub-basins

19

Table 4.4: Summary of Thanlwin sub-basins

Sub-basin Area

Population State/Region km2 % of basin

Lam Pha HPP 8,907 7.16 486,225 Kayin, Mon

Baluchaung 7,837 6.30 892,747 Kayah, Mandalay, Shan

Lower Thanlwin 13,972 11.23 1,716,525 Kayah, Kayin, Mon

Middle Thanlwin 20,264 16.28 134,457 Kayah, Shan

Nam Ma 3,424 2.75 24,479 Shan

Nam Pawn 11,572 9.30 435,364 Kayah. Kayin, Shan

Nam Teng 15,386 12.36 339,258 Kayah, Shan

Upper Thanlwin 29,352 23.59 1,122,780 Shan

Nam Hka 8,074 6.49 19,732 Shan

Myet Taw Chaung HPP 5,664 4.55 450,659 Kayin, Mon

Yunzalin HPP 3,036 100.00 8076 Bago, Kayah, Kayin, Mon

It is estimated that over 10 million people live in the basin - 3.8 million in China, 6.1 million in

Myanmar, and 0.6 million in Thailand (www. worldpop.org). Population density is highest in Mon

State (more than 300 persons per km2) and western Yunnan (up to 100 persons per km2), and lowest

in Tibet (5 people per km2). In Myanmar, the Thanlwin River flows through Shan, Kayah, Kayin

states and Bago region.

4.3 Mekong Basin

The Mekong Basin is located in Shan State East and comprises approximately 2.7% (~22,070 km2) of

the total country area.4 With its origins in the Tibetan Plateau, the Mekong River flows down along

the border with PRC, as well as with the Lao People’s Democratic Republic (LAO PDR) - also

forming the border of the Mekong sub-basins within Myanmar. The tributaries of the Mekong Basin

in Myanmar feed into the Mekong River along those borders, contributing 17.6 km3 annually to the

annual average flow in the River of 475 km3 - accounting for approximately 3.7% of total annual

average flow. Like the neighbouring Thanlwin Basin, most runoff occurs during the monsoon season

(mid-May till mid-November). The Mekong Basin has been divided into four sub-basins these are

shown below in Figure 4.6 and Table 4.5.

Table 4.5: Summary of Mekong sub-basins

Sub-basin Area

Population State/Region km2 % of basin

Nam Lin 2638 12.02 207,869 Shan

Nam Lwe 9364 42.67 366,861 Shan

Other Mekong 6534 29.77 79,890 Shan

Nam Hkoke 3411 15.54 104,649 Shan

4 http://www.fao.org/nr/water/aquastat/basins/mekong/mekong-CP_eng.pdf

20

Figure 4.6: Mekong sub-basins

4.4 Sittaung Basin

The Sittaung Basin covers approximately 34,950km2, or ~5.2% of the total land area of Myanmar.

The Basin drains from the northeast of Yamethin on the edge of the Shan Plateau, flowing 450 km

south before discharging into the Gulf of Martaban. The Sittaung River lies between the forested

Bago Mountains on the west, and the steep Shan Plateau on the east. The Basin has a large variation

21

in rainfall, ranging from 889 mm per annum in the north to 2,540-3,810 mm per annum in the south.

The mean annual river discharge into the Gulf of Martaban is flow is around 1,540 m3/s (equivalent to

a unit flow of 32 l/s/km2). The river is navigable year-round for 40 km, and during three months in the

monsoon for 90 km.5 23 major tributaries flow into the main river. The Sittaung has been is divided

into three sub-basins for analysis in the SEA as shown below in Figure 4.7 and Table 4.6.

Figure 4.7: Sittaung sub-basins

5https://sites.google.com/site/bagosittaungriverbasinanalysis/system-discription/a-phy/i-location-dimensions

22

Table 4.6: Summary of Sittaung sub-basins

Sub-basin Area

Population State/Region km2 % of basin

Bawagata 1229 3.52 892,747 Bago, Kayin

Other Sittaung 28698 82.20 3,088,695 Bago, Kayah, Kayin, Magway, Mandalay, Mon,

Naypyitaw, Shan

Paung Laung 4985 14.28 594,705 Kayah, Kayin, Mandalay, Naypyitaw, Shan

Around 5.8 million people, or 10% of Myanmar’s total population is living in the basin. It’s relatively

densely populated due to its mild slopes between the mountains and the river course. Nay Pyi Taw

District covers the upstream part of the basin, Bago District of the Sittaung Basin and Mon State

covers the east part of the river mouth. A total of 7325 ha m3 surface water reservoirs are in the basin,

of which 42% services irrigation purposes and the other 58% a combination of irrigation water supply

with hydro-electric power generation. There are nine existing HPPs in the Sittaung Basin with an

installed capacity of 810 MW and an additional three planned projects.

4.5 Bago and Myit Ma Hka Basin

The Bago and Myit Ma Hka basin drains from the Pegu Range hills into the Myit Ma HKa River,

which is called the Yangon River further downstream. The basin covers approximately 1.5%

(10,050km2) of Myanmar’s total land area, and the main river is about 331 km long. The Annual

rainfall is around 2,980 mm in the Bago catchment area. In Bago District the population density is

124/km2 (compared to the national average of 76/km2). Bago City has a population of ~284,000

(2012) and there is approximately five million people residing in the Basin (2010); with 22% living in

urban areas and 78% in rural areas. The Zaung Tu (20MW) HPP is the only existing hydropower

project and there are no planned projects. The map and summary information for the Basin is shown

below in Figure 4.8 and Table 4.7.

Table 4.7: Summary of Bago and Myit Mo Hka

Sub-basin Area

Population State/Region km2 % of basin

Bago 10261 100.00 4,610,213 Bago, Yangon

23

Figure 4.8: Bago and Myit Mo Kha Basin

4.6 Bilin River Basin

The Bilin River rises in Papun Township, Kayin State and flows about 210 km southwards flowing

into the Gulf of Martaban. There is limited information published on the Belin basin, and information

obtained from GIS analsyis is summarised below in Figure 4.9 and Table 4.8.

24

Figure 4.9: Bilin River Basin

Table 4.8: Summary of Bilin River Basin

Sub-basin Area

Population State/Region km2 % of basin

Bilin 3056 100.00 216,160 Bago, Kayin, Mon

25

4.7 Tanintharyi Coastal Basin

The Tanintharyi Coastal Basin in the south of Myanmar drains into the Andaman Sea. The

Tanintharyi River rises from the Tenasserim Range at an altitude of 2,074 m and flows through the

Tanintharyi Region, before entering the sea at Myeik (Mergui). The basin area is 17,673 km2 and is

completely within the Tanintharyi region covering 41% of its total area. The basin boundary is the

national border with Thailand for ~450km. The Tanintharyi Coastal Basin is divided into three sub-

basins for analysis in the SEA as shown in Figure 4.10 and Table 4.9.

Figure 4.10: Tanintharyi sub-basins

26

Table 4.9: Summary of Thanintharyi sub-basins

Sub-basin Area

Population State/Region km2 % of basin

Tanintharyi 17,865 39.81 253,817 Tanintharyi

Other Tanintharyi Coastal Basins 26,019 57.98 1,448,724 Kayin, Mon, Tanintharyi

Glohong Kra HPP 992 2.21 140,020 Tanintharyi

4.8 Rakhine Coastal Basin

The Rakhine Region in western Myanmar is flanked to the east by the Rakhine (Arakan) mountain

range and to the west by the Bay of Bengal, whilst bordering Bangladesh to the north. The distance

between the mountain and the sea is relatively short, usually resulting in many small river basins

draining the rain falling along the mountain range. The Rakhine mountains experience some of the

highest rainfall in the country, exceeding 5,000 mm per annum (in Sandoway), compensating for the

small size of the sub-basins to provide enough flows for potential hydropower development.

The Rakhine Coastal Basins in the west drains into the Bay of Bengal. There is currently limited

information on the coastal rivers of the Rakhine Coastal Basin. The Thandwe River has a catchment

area of 850 km2 and one tributary which has its confluence 6km downstream of Thandwe with a

catchment area as little as 250 km2. The upstream part of the Lemro River lies within Chin State

(Mindat District) and the downstream and flood plains are within Rakhine State (Sittwe District). The

Rakhine Coastal Basin can be divided into eight sub-basins for analysis in the SEA as shown in

Figure 4.11 and Table 4.9 below.

Table 4.10: Summary of Rakhine coastal basins

Sub-basin Area

Population State/Region km2 % of basin

Other Rakhine Coastal Basins 24,828 42.96 1,377,840 Ayeyarwady, Bago, Chin, Magway,

Rakhine

Lemro 9,929 17.18 410,189 Chin, Magway, Rakhine

Kaladan 13,612 23.55 320,527 Chin, Rakhine

Nam Hkoke 3,411 5.90 104,649 Shan

Thatay 1,289 2.23 10,943 Ayeyarwady, Bago, Rakhine

Than Dwe 1,359 2.35 38349 Ayeyarwady, Rakhine

Kyein Ta Li 1,061 1.84 9,842 Ayeyarwady, Rakhine

Saing Din Creek 2,304 3.99 55,545 Chin, Rakhine

27

Figure 4.11: Rakhine sub-basins

28

5 STAKEHOLDER ENGAGEME NT

The identification of key issues and opportunities was stakeholder led. The key issues, opportunities

and development objectives were grouped into strategic themes and sorted according to their

significance with input from stakeholders. The issues were identified through regional river basin

consultations, direct discussions with stakeholders and multi-stakeholder workshops.

5.1 Stakeholder engagement plan (SEP)

The SEP outlines the stakeholder consultation and communication activities throughout each step of

the SEA and the key stakeholder groups and has been released as a separate document. The SEP was

prepared to ensure that key stakeholder groups were identified and effectively engaged in each of the

key steps of the SEA. The SEP will be closely integrated with the overall IFC Communications Plan

for the SEA.

Stakeholder engagement will occur through all key steps; however, the scoping and baseline phase

was the most important for defining the geographic scope and key themes and issues to be covered in

the SEA. The stakeholder consultation events were designed to capture as many states/regions as

possible, and included multiple visits to major river basins in Myanmar. The stakeholder engagement

activities are categorised in Error! Reference source not found. below as multi-stakeholder, g

overnment and civil society consultations, information session and workshops.

The SEP recognizes the dynamic nature of a SEA and consultations also entail ongoing:

• interaction with the Advisory Group (AG) and six expert groups;

• direct discussions with individual stakeholders;

• roundtable meetings with specific stakeholder groups; and

• outreach at conferences, forums and other workshops in Myanmar and the Mekong region.

5.2 Stakeholder groups

The first step in the SEP was to identify the key stakeholders to be consulted and involved in the SEA.

The initial list of stakeholders was developed based on the TOR and updated following the kick-off

meetings in October 2016 through direct conversations with IFC, MOEE, MONREC, the AG and

other stakeholders. The stakeholder groups will be expanded and updated as the SEA evolves to

identify additional groups which have an important stake in hydropower development and river basin

management. The initial list of stakeholders was categorized under the following stakeholder groups:

• Union government;

• Sub-national government;

• National and local civil society organizations (CSOs);

• Ethnic armed organisations (EAOs);

• Political parties;

• Local communities;

• Private sector;

• International non-government organizations (NGOs);

• Universities and research institutes; and

• Multilateral development agencies and banks

The comprehensive list of stakeholder groups and how they were involved in the SEA is set out in the

Stakeholder Engagement Plan (SEP). The consultation plan for the peace and conflict assessment

29

conflict was developed in March 2017 and is summarised in Chapter 8- Peace and Conflict of this

baseline assessment report.

5.3 Stakeholder engagement activities

The following key stakeholder consultation events were conducted in the Scoping and Baseline

Assessment phase:

• Kick-off meeting: Meeting with MONREC, MOEE, IFC and other stakeholders to introduce

the SEA methodology and process;

• Regional river basin consultations: Roundtable and workshops with different stakeholder

groups at the basin and region/state level to identify the key E&S issues and opportunities in

the Thanlwin, Sittaung, Chindwin and Tanintharyi basins;

• Multi-stakeholder baseline assessment workshops: Review findings from regional river

basin consultations to identify and prioritize specific issues and opportunities at the national

and basin level for the Ayeyarwady-Chindwin and Thanlwin river basins;

• Consultation with local communities: Key informant interviews and focus group

discussions with villages affected by the Upper Paung Laung, Lower Yeywa, Bawgata, Shwe

Gyin and Baluchaung 1, 2 &3 HPPs.

• Consultations with EAOs and political parties: The Conflict and Peace assessment carried

out additional consultations with EAOs, political parties and CSOs in Mytikina, Taunggyi,

Kyauk. and, Mae Sot and Chiang Mai in Thailand.

5.4 Regional River Basin Consultations

The regional river basin consultations conducted in November and December 2016 were the first

opportunity in the SEA to engage with stakeholders at the river basin level. Discussing the issues and

opportunities facing river basin development in the Thanlwin, Sittaung, Chindwin and Tanintharyi

offered important inputs in defining the SEA key themes and highlighting specific issues in the river

basins for further analysis.

The consultations consisted of two separate events; 1) roundtable meetings with region/state offices of

MONREC, MOEE and other ministries, and, 2) civil society workshops. These events were held in

the following states/regions:

• Thanlwin: Taunggyi, Shan State and Loikaw, Kayah State;

• Sittaung: Bago and Taungoo, Bago Division;

• Chindwin: Monywa, Sagaing Division; and

• Tanintharyi: Dawei, Tanintharyi region.

The SEA team used an “affinity diagram” process which combines individual/group brainstorming

with a structured approach to display the ideas/products of the brainstorming according to common

themes. These themes were then used by the groups as a basis for determining the key E&S values in

each of the basins. Groups were provided with base maps of the river basin to draw locations of key

areas for biodiversity and livelihoods.

The frequency of issues and opportunities listed by stakeholders were recorded during the stakeholder

consultations. Further analysis was done by the SEA team to group the issues and opportunities into

categories. The key issues and opportunities listed by stakeholders across the four basins are shown

below in Table 5.1 and Table 5.2 respectively.

Table 5.1: Summary of frequently listed issues in regional river basin consultations

Issues Thanlwin Sittaung Chindwin Tanintharyi

Accountability and transparency

Benefit sharing

Conflict

Cultural heritage

30

Development

Environmental pressures

Erosion and sedimentation

Ethnic minorities

Flooding

Governance

Hydropower

Land issues

Livelihoods

Mining

Public services

Resettlement

Transportation

Table 5.2: Summary of frequently listed opportunities in the regional river basin consultations

Opportunities Thanlwin Sittaung Chindwin Tanintharyi

Access to electricity

Agriculture

Benefit sharing

Development

Environmental protection

Fisheries (aquaculture)

Forest management

Hydropower

Improving governance

Improving public services

Land policy

Livelihoods

Renewable Energy

Small-scale hydropower

Transportation

Conflict and ethnic minorities emerged as significant issues in relation to hydropower development.

CSOs in the Thanlwin, Tanintharyi and Sittaung basins raised issues around conflict, control of

natural resources and ethnic minority groups. Many of the planned large-scale hydropower projects

are in contested areas; areas that have experienced past conflict events or states/regions that are

pushing for increased revenue sharing and control of natural resource projects. Due to the complex

and evolving nature of conflict in Myanmar it was decided that conflict would be analysed as a

separate strategic theme in the SEA. The IFC have provided additional resources for trend and spatial

analysis for conflict and peace building.

Highlighting and mapping existing environmental pressures guided the analysis for the strategic

themes. Stakeholders in the Sittaung River Basin reported changes in flow, sedimentation and

riverbank erosion, loss of fisheries and social issues associated with existing hydropower. Assessing

the impacts, benefits and cumulative effects of the nine existing HPPs in the Sittaung can be used to

inform sustainable hydropower development in other major basins by learning from past experiences

and observed changes in natural resources and social systems.

31

Mining was raised as a significant issue in the Chindwin River Basin. Such activities led to water

quality pollution, riverbank erosion and sedimentation and will be assessed in the geomorphology and

sediment and economic themes. Deforestation and illegal logging were highlighted in all basins;

informing the biodiversity theme in mapping protected areas, forest estates and changes in forest

cover. Understanding the existing environmental pressures from existing hydropower, mining and

other land uses is important for establishing the baseline and the impact assessment phase when

overlaying the pipeline of planned HPPs.

Identifying the opportunities for river basin development defined the economic sectors and land use

for analysis in the SEA. As with the issues above it is important to consider the existing economic

sectors, land uses and opportunities for development at the basin level. From the regional river basin

consultations, the key economic sectors identified in addition to hydropower were mining, agriculture,

forestry and transportation, including inland water transport (IWT). The relationships between

hydropower and these economic sectors will be analysed in the baseline and impact assessment

phases.

While there were diverging views on hydropower and river basin development, the impacts and

benefits were well recognised and will form the basis of future stakeholder dialogue. Stakeholders

listed hydropower, development, governance, transparency and accountability and benefit sharing as

issues, but also as opportunities. Under hydropower for instance, the environmental and social

impacts of existing and planned hydropower were listed but also the potential benefits of hydropower

including access to electricity, improved public services and agricultural and economic development.

So, although some CSOs were against large-scale hydropower development until the peace process is

resolved there is a starting point for dialogue on options for hydropower development that may benefit

local communities and generate revenue for states and regions.

A full summary for these consultations is provided in Regional River Basin Consultations-Key

Findings.

5.5 Baseline assessment workshops (summary)

The team conducted three multi-stakeholder baseline assessment workshops in January and February

2017:

• National Multi-Stakeholder Workshop: Friday, January 27, 2017 in Yangon

• Ayeyarwady-Chindwin Multi-Stakeholder Workshop: Tuesday, January 31, 2017 in

Myitkyina, Kachin State

• Thanlwin Multi-Stakeholder Workshop: Friday, February 3, 2017 in Loikaw, Kayah State

The multi-stakeholder workshops were open for all stakeholders to attend from the union and sub-

national government, international and local NGOs, universities and private sector. The Ayeyarwady-

Chindwin and Thanlwin workshops had more of a regional focus and the Yangon workshop focussed

on national priorities for hydropower and river basin development. The objectives of the workshops

were to:

• Share findings from regional river basin consultations and other stakeholder engagement

activities;

• Present the initial spatial and trend analysis under each of the strategic themes for the SEA;

• Identify key issues and opportunities in river basin development; and

• Set priorities for the key issues and opportunities.

Stakeholders were asked to identify (on coloured cards) one priority issue or opportunity each for

river basin development in Myanmar under each of the key strategic themes for the SEA.

Stakeholders then set priorities on the level of importance by voting (using three red dots each) for the

most important issues and opportunities (Table 5.3).

Table 5.3: Priority SEA themes identified in multi-stakeholder workshops (% of participants)

Themes Yangon Myitkyina Loikaw

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Aquatic ecosystems and fisheries 13 2 3

Biodiversity and protected areas 9 20 6

Climate change 10 19 9

Conflict 12 17 25

Economics and river basin development 12 7 9

Geomorphology and sediment 15 2 1

Hydropower 11 17 26

Social and livelihoods 18 16 21

The top three priorities identified in the Yangon workshop were social and livelihoods,

geomorphology and sediment and aquatic ecosystems and fisheries. The participants at the Yangon

workshop were mainly from NGOs, universities, hydropower companies and there were some local

participants who had attended the regional river basin consultation in the Sittaung Basin. Generally,

these participants had a deeper technical understanding of the cumulative impacts of hydropower

development.

In Myitykina, the top three priorities were biodiversity and protected areas, climate change and

conflict. The workshop was attended by Kachin State government representatives, local CSOs,

academics and participants who had attended the regional river basin consultations in Monywa. There

are active conflict zones in Kachin State and local CSOs have been protesting around the

environmental and social impacts of the proposed Myitsone project for many years, hence there was a

strong focus on conflict and ensuring the protection of biodiversity in the upstream of the

Ayeyarwady.

In Loikaw, hydropower, conflict and social and livelihoods were identified as the top three areas of

concern. The Loikaw workshop was attended by Kayah state government, CSOs and local

stakeholders who had participated in the regional river basin consultations in Loikaw and Taunggyi.

The focus in this workshop was around the impacts of hydropower, particularly in relation to

resettlement, displacement and loss of livelihoods for local communities. The CSOs also raised issues

around conflict and some stated that the peace process should be resolved prior to hydropower and

economic development.

The baseline assessment workshops were used to update the initial trend and spatial analysis, and to

identify gaps in existing knowledge and areas for follow-up in completing this baseline report.

5.6 Consultation with local communities affected by existing hydropower

For in-depth case study analysis, the SEA team consulted with local communities affected by two

existing HPPs in April, including

• Upper Paung Laung (140MW): Commissioned in 2015 in the Sittaung Basin near the border

of Nay Pyi Taw Union Territory and Shan State; and

• Lower Yeywa (790 MW): Commissioned in 2010 in the Ayeyarwady-Chindwin Basin,

Mandalay Region.

These in-depth studies will provide an opportunity to validate information at the village level around

the environmental and social impacts of hydropower. The findings of this report will be used in the

impact assessment phase to determine how local communities have been affected by hydropower.

Alongside the baseline assessment workshop in Loikaw, the team also visited the Balachaung cascade

and informally interviewed local communities living near the Baluchaung 1 &2 HPPs. As part of the

Peace and Conflict assessment, consultations were also conducted in July 2017 with local

communities affected by the Shwe Gyin HPP and the planned Bawgata project.

5.7 Advisory Group (AG) and Expert Technical Groups (EGs)

Six EGs and an overarching AG were constituted and have met frequently to provide guidance and

technical inputs as the SEA has progressed. Those groups are convened by the IFC as part of the

33

stakeholder engagement process. The AG is chaired by IFC, and consists of 15-18 members. Its role is

to:

1. Provide oversight and support to conduct the SEA; and

2. Lend support in shaping and implementing recommendations of the SEA.

The AG provides on-going advice to the SEA team on their activities, sustainable development

objectives and priority setting, available baseline data and the identification of significant biophysical

and socio-economic values, and consultation. In addition, each draft report is provided to AG

members for review and comment. The SEA team provided initial briefings to the AG on the aim and

scope of the SEA in November 2016 and on the progress of the scoping and baseline assessment

phase in January 2017, March 2017, June 2017 and July 2017.

The EGs draw in additional stakeholders to provide technical inputs. Members are mainly drawn from

research institutes, NGOs, the private sector and consultancies. There are six Expert Groups:

1. Hydropower and energy;

2. River hydrology and geomorphology;

3. Aquatic ecology/fisheries;

4. Terrestrial ecology, protected areas, forestry;

5. Social, livelihoods, indigenous peoples, conflict areas, cultural issues; and

6. Economics, river and basin non-hydropower use and development (including navigation,

irrigation, agriculture and mining).

The Groups provide an effective mechanism for exploring each significant issue in detail. They

provide an opportunity for consultation with recognized specialists in the main themes of concern to

the SEA and relating to sustainable hydropower development. To date Groups meetings have been

conducted in December 2016 with a second round in April and May 2017. The Biodiversity and

fisheries/aquatic ecology groups held a two-day workshop in June 2017 to review the important

natural areas and their attributes in each basin. A round of EG meetings was held with the six EGs in

June 2017 to review the draft findings of this baseline assessment and draft methodology to be used in

the sustainability analysis.

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6 LEGAL AND INSTITUTIO NAL FRAMEWORK

This section summarizes the legal and institutional framework relating to environmental protection

and hydropower development. It provides an overview of the national planning framework for key

issues relating to hydropower development, including water resources, land use and agriculture,

fisheries and forestry.

6.1 Legal framework

Different sectoral ministries are formed and guided by relevant union level laws. With the approval of

the president and his/her cabinet, the ministries and the relevant departments draft by-laws and

regulations concerning their own sectors. Sectoral laws are commonly supported by rules, procedures,

orders, guidelines, and standards. The Environmental Conservation Law 2012 and its by-laws are

presented in Figure 6.1 as an example of the legal hierarchy in Myanmar.

Figure 6.1: Law, rules, procedures and guidelines under the Environmental Conservation Law 2012

Though not legally binding, policies identify and inform areas where legislation is needed or

enforcement lacking, serving as a formal communication document at the highest levels of

government. In addition to drafting and implementing sector-specific regulations, ministries and

departments also prepare policies, strategic action plans and sectoral master plans, which guide the

planning and implementation of sector-specific development and regulation activities.

Most of the sectoral master planning up to 2030 was undertaken by the previous Union Solidary and

Development Party (USDP) government, and it is not clear which of the master plans will be adopted

by the NLD government. Relevant to this SEA, the National Electricity Master Plan (NEMP) 2014

was not approved and is now being revised by MOEE with the assistance of Japan International

Cooperation Agency (JICA). Further information on power generation mix and power sector demand

is provided in Chapter 2-Hydropower and Chapter 6-Economics.

6.2 National Committees

Coordination between ministries and departments is limited. To address this problem the government

has established numerous level inter-ministerial committees to address multi-sectoral issues. These

include the:

• National Environmental Conservation and Climate Change Central Committee (NECCCCC);

• National Water Resource Committee (NWRC); and

• National Land Committee.

These committees are chaired by one of the two vice presidents and include the union level minister

of the most relevant sector. They are relevant to hydropower and demonstrate the cross-cutting nature

of developing hydropower in Myanmar.

35

6.3 Sub-national governance

The 2008 constitution created sub-national governments in the 14 states and regions of Myanmar. All

chief ministers are appointed by the president, who in turn appoint state/region ministers. City and

local governments are an extension of the state/region government, although in places like Yangon

and Mandalay there are City Development Committees (CDCs).

6.4 Electricity and Energy

Last year, in 2016, when the NLD government came into power, Ministry of Electric Power (MOEP)

1, MOEP2 and Ministry of Electricity (MOE) were consolidated as Ministry of Electricity and Energy

(MOEE). MOEE oversee both the energy and power sector administration in Myanmar, including

hydropower which is the responsibility of the Department of Hydropower Planning (DHPP) and

Department of Hydropower Implementation (DHPI).

6.4.1 National Energy Policy

The previous government formulated a draft National Energy Policy (2014) with the following

objectives related to hydropower and power generation:

• To implement a short-term and long-term comprehensive energy development plan based on

systematically investigated data on the feasible potential energy resources that can be

practically exploited, considering minimum impact on the natural and social environment;

• To implement programs by which the local population could proportionally enjoy the benefit

of energy reserves discovered in their areas; and

• To implement programs on a wider scale, utilizing renewable energy resources such as wind,

solar, hydropower, geothermal and bio-energy for sustainable energy development in

Myanmar.

6.4.2 National Electrification Plan and National Electricity Master Plan

The National Electricity Master Plan (NEMP) is being prepared by MOEE with JICA support and due

to be completed in 2018, is assessing the appropriate power generation mix (e.g. gas, hydropower,

wind, solar and coal) and developing the power development plan. Collaborative arrangements are

being put in place between JICA and IFC to integrate the two processes and avoid confusion among

stakeholders. One special issue for discussion is the intention of the JICA team to conduct an SEA of

the NEMP as part of JICA safeguard requirements.

6.4.3 Legal requirements for hydropower

The key legislation and policy documents relevant to electricity, land use, water resources,

environmental conservation, disaster risk reduction, climate change and investment applicable to

hydropower development are summarized in Table 6.1 below.

Table 6.1: Laws relating to hydropower development

Energy/electricity

• Electricity Law (2014)

Land

• Land Acquisition Act (1894)

• Vacant, Fallow, Virgin Lands Management Law (2012)

• Farmland Law (2012)

Water

• Conservation of Water Resources and Rivers Law (2006)

Environment

• Environmental Conservation Law (2012)

• Environmental Conservation Rules (2014)

• National Environmental Quality (Emissions) Guidelines (2015)

• Environmental Impact Assessment Procedures (2015)

Disaster risk reduction/climate change

• Myanmar Action Plan for Disaster Risk Reduction (2012)

36

Investment

• Myanmar Investment Law (2016)

• Foreign Investment Law (2012)

• Myanmar Investment Rules (2017)

• Intended Nationally Determined Contribution – INDCs (2015)

In addition, the following policies and strategic documents with relevance to hydropower

development are being drafted by GOM and are expected to be adopted in 2017/18:

• National Environmental Policy (2017);

• Strategic Framework for Environmental Policy (2017);

• Climate Change Policy (2017);

• Climate Change Strategy and Action Plan (2017);

• Green Economy Policy Framework (2017/18);

• Guidelines for Public Participation in Myanmar’s EIA Process (2017/18);

• National Land Use Policy (2017/18); and

• National Water Resource Policy (2017/18).

6.5 Control of Natural Resources and Hydropower

Myanmar’s natural resources have been predominately managed and taxed by the union government

through line ministries and the state-owned enterprises under them. Since the 2008 constitution was

adopted, some decentralization relevant to natural resources has taken place from both a) the union

ministry side, via the transfer of some responsibilities to state/region governments, and b) new

legislation or orders of individual state/region governments (TAF, 2014).6

Specifically, for the hydropower sector, according to constitution, 4a of schedule 2 (refer to session

188), state/region governments have rights to regulate:

“Medium and small scale electric power production and distribution that have the right to be

managed by the Region or State not having any link with national power grid, except large

scale electric power production and distribution having the right to be managed by the

Union”.

Small scale electrical projects are defined as up to 10 MW capacity in the Electricity Law 2014, while

mid-sized electrical projects are defined as 10 < to ≤ 30 MW. Large scale projects (greater than 30

MW) are regulated by MOEE. Regardless of size, every HPP is governed by the Myanmar EIA

procedures.

In summary, an HPP with the following characteristics could potentially be under the jurisdiction of

state/region government and their corresponding parliament:

• Small (installed capacity of up to 10 MW) or medium (installed capacity 10 < to ≤ 30 MW);

and

• Not linked to the national grid.

6.6 Environment

In 2016, the NLD government combined MOECAF and the Ministry of Mines under a new ministry

called Ministry of Natural Resource and Environmental Conservation (MONREC). Along with the

Department of Mine and Forest, ECD now stands as a main, functioning department under MONREC

responsible for EIA and environmental conservation.

6 TAF. (2014). Natural Resources and Subnational Governments in Myanmar, Discussion Paper No.14, The Asia Foundation, Yangon,

Myanmar

37

The National Environmental Conservation and Climate Change Central Committee (NECCCCC)

addresses the multi-sectoral issues of environment and climate change and is under the guidance of

the Vice President 1, and chaired by the Minister of MONREC. The committee secretary is the

Director General of ECD, supported by a central working committee composed of representatives

from six technical working committees. There are also states and region-level counter-parts for each

working group (Figure 6.2).

Figure 6.2: Institutional arrangements for environmental conservation

The Environmental Conservation Law (2012) is the major legislation on environmental governance in

Myanmar. This is supported by the Environment Conservation Rules (2014) and the EIA Procedure

and Environmental Quality (Emission) Guidelines.

6.6.1 EIA Procedures

The EIA Procedures (2016) require all development projects, whether public or private investments,

to undergo impact assessment, either in the form of a full EIA or a simpler Initial Environmental

Examination (IEE). The impact assessment requirements for hydropower projects are set out in Table

6.2 If, upon reviewing the IEE report, the Review Board may require that a full EIA be prepared.

Regardless of the level of impact assessment, all projects are required to have Environmental

Management Plans (EMP) that detail implementation, monitoring and management measures to avoid

and mitigate negative environmental impacts.

Table 6.2: EIA/IEE requirements for hydropower projects

Project type (hydropower) IEE EIA

Installed capacity ≥ 1 MW but ˂ 15 MW ≥ 15 MW

Reservoir volume (full supply level) < 20,000,000 m3 ≥ 20,000,000 m3

Reservoir area (Full supply level) < 400 ha ≥ 400 ha

38

MONREC and MOEE are currently jointly drafting Environmental and Social Impact Assessment

(ESIA) guidelines for the hydropower sector.

The EIA Review Board and the Environmental Conservation Department assess the impacts of the

proposed project relating to energy and natural resources, nature conservation and management,

cultural heritage sites, waste management practices, accidents and emergency measures, monitoring

details, reporting procedures and financial guarantee requirements. These and other appropriate

information and conditions are described in the Environmental Compliance Certificate (ECC), which

is made available to civil society and the public for review. MONREC reserves the right to modify the

conditions of an ECC or require the project to revise the EMP at a later date if any new information

comes to light concerning adverse impacts during construction and operation.

6.6.2 Draft National Environmental Policy (2017)

The National Environment Policy (NEP) is being updated and is expected to be issued in December

2017, superseding the NEP (1994). This policy will be supported by a strategic framework and

relevant master plans and action plans. The strategic framework for NEP itself has been drafted and is

subject to consultations. It is expected to be announced in 2017/17. The NEP (2017) builds on the

1994 policy in expressing the following core values:

• The wealth of the nation is its people, its cultural heritage, its environment and its natural

resources;

• It is the responsibility of the State and every citizen to preserve its natural resources in the

interests of present and future generations; and

• Environmental protection should always be the primary objective in seeking development.

The NEP contains 23 policy principles that can be grouped into three broad categories: (i) a clean

environment and healthy functioning ecosystems; (ii) sustainable economic and social development;

and, (iii) mainstreaming environmental protection and management. Notable principles relating to the

hydropower sector are:

• Recognize intangible values of the environment, including economic values of ecosystem

services, and call for integrating them in development planning (principle 2 and principle 12);

• Call for the generation of energy from sustainable and renewable sources (principle 10);

• Call for sustainable management of natural resources and ecosystem (principle 3, 4, and 5);

and

• Declare the rights of individuals and groups to natural resources and access to a clean

environment (principle 1, 6).

The NEP also emphasises that past damage to the environment should be considered in present and

future development planning.

6.6.3 Draft Environmental Strategic Framework

The Draft Environmental Strategic Framework (2017) falls under the NEP. The following provisions

in the Strategic Framework are most relevant to sustainable hydropower, biodiversity conservation,

Integrated Water Resources Management (IWRM):

• Implement a moratorium on new concessions in KBAs, areas of potential ecological

significance for ecosystem services and areas where legitimate tenure rights are yet to be

recognized, registered or protected;

• Develop and implement a national restoration and recovery plan for degraded ecosystems,

which is linked to land use and spatial planning, marine and coastal zone planning, and

IWRM, and which builds upon the Forest Restoration Plan;

• Ensure that urban and regional development planning laws and the implementation of the

National Urban Policy are harmonised with SEA arrangements for considering development

and investment plans or programmes, and with EIA requirements for projects, at the urban and

metropolitan levels;

• Develop and implement a regime for IWRM for all river basins in Myanmar that is based on

inclusive and transparent processes and which sets sustainable water resources development

39

and abstraction levels for both surface and groundwater resources that ensure water for

ecological outcomes.

• Further investigate the potential for run-of-river and for small-scale hydropower development

options to contribute to Myanmar’s future energy needs while maintaining the ecological

integrity of the country’s river systems;

• Ensure that hydropower development is undertaken in the context of integrated planning

regimes and following full consideration of all project level and cumulative (including

downstream) impacts; and

• Support investments in new technology and innovative practices for Myanmar’s power sector

that prioritize clean, low-carbon, renewable and equitable power generation and supply,

including prioritization of demand management and efficiency measures.

6.7 Water Resources

Myanmar has high potential for social economic development owing to its abundant water resources.

Water is used in all development sectors such as agriculture, hydropower, industry, fisheries,

irrigation and livestock as well as being the foundation for all livelihoods. Several agencies and

departments under different ministries are involved independently in the water sector (Table 6.3).

Table 6.3: Summary of department and functions for IWRM

Agency Ministry Function

Department of Meteorology

and Hydrology (DMH)

Ministry of Transport and

Communication (MOTC)

Water assessment of major rivers,

hydrology, data collection and analysing

Irrigation and Water Resource

Utilization Department

Department of Rural

Development

Ministry of Agriculture,

Livestock and Irrigation

(MOALI)

Provision of irrigation water to farmland

and operation of irrigation and multi-

purpose dams

Provision of water to rural communities

Department of Hydropower

Planning (DHPP)

Department of Hydropower

Implementation (DHPI)

MOEE Hydropower planning and implementation

Directorate of Industrial

Supervision and Inspection

Ministry of Industry (MOI) Industrial use, water treatment

Department of Public Health Ministry of Health and Sports Environmental health, water quality

assessment and control and monitoring

water quality

City Development Committee

(CDD)

Yangon, Mandalay, Nay Pyi

Taw CDC

City water supply and sanitation, water

conservation and protection works

Progress of Border Areas and

National Races Department

Ministry of Border Areas Domestic and rural water supply and

sanitation

Water Resources Utilization

Department (WRUD)

MOALI Pump irrigation and rural water supply

DWIR MOTC River training works and inland water

transport

Lead agency for the Ayeyarwady

Integrated River Basin Management

(AIRBM)

Forest Department MONREC Watershed management

Department of Fisheries MOALI Fishery works, monitoring and controlling

water bodies

Department of Urban and

Housing Development

Ministry of Construction

(MOC)

Domestic water supply

Environmental Conservation

Department

MONREC Environmental conservation and water

resource management

Township government Organizing the water needs at township,

40

Agency Ministry Function

village tract and village level

Those agencies implement their main duties according to their segregated and sometimes conflicting

mandates and an IWRM framework is required to ensure enhanced coordination and consistency.

6.7.1 National Water Resources Committee (NWRC) and policy

The NWRC was formed in 2013 to develop the National Water Resources Policy (NWP), National

Water Law and a framework for IWRM for the watersheds, rivers, lakes and reservoirs, groundwater

aquifers and coastal and marine waters throughout the country. The committee was abolished in

March 2015 by the USDP government and was re-formed by vice president U Henry Van Tio in June

2016. The 20-member committee comprises representatives from the ministries of Border Affairs;

Agriculture, Livestock Breeding and Irrigation; Transportation and Communications; Natural

Resources and Environmental Conservation; Electric Power and Energy; and Planning and Finance.

Other members include the mayors of Nay Pyi Taw, Mandalay and Yangon, the permanent secretaries

and director generals of related ministries and departments; and water experts.

The NWRC is now drafting a national integrated water management strategy, a national water

resources policy, a water framework directive and a water law to ensure that all future policy

development on water resources or subjects that relate to or have an impact on Myanmar's water

resources will consider:

• Further development of legal instruments and a system of institutions to protect and manage

Myanmar's water resources;

• Strategies, master plans, development plans and projects that relate to or have an impact on

Myanmar's water resources.

The guiding principles of the National Water Policy most relevant to sustainable hydropower

development include:

• Planning, development and management of water resources need to be governed by common,

integrated perspectives considering local, regional, state and national contexts, having an

environmentally sound basis and taking human, social and economic needs into consideration;

• Good governance through transparent and informed decision making is crucial to the

objectives of equity, social justice and sustainability. Meaningful and intensive participation,

transparency and accountability should guide decision making and regulation of water

resources;

• Water is essential for sustenance of ecosystems, and therefore, minimum ecological needs

should be given due consideration;

• All the elements of the water cycle, i.e., evapotranspiration, precipitation, runoff, rivers, lakes,

soil moisture, groundwater and the sea are interdependent; the basic hydrological unit is the

river basin, which should be considered as the basic hydrological unit for planning purposes;

• The impact of climate change on the availability of water resources must be factored into

water management related decisions. Water-consuming activities need to be regulated keeping

in mind the local geo-climatic and hydrological situation.

6.7.2 Ayeyarwady Integrated River Basin Management Project (AIRBMP) and

Chindwin River Basin Organization (RBO)

The World Bank is supporting the National Water Resources Committee (NWRC) implement the

AIRBMP. The Project aims develop the institutions and tools needed to implement integrated river

basin management in the Ayeyarwady Basin. The State of the Basin Assessment (SOBA) report now

being prepared as a foundation for an Ayeyarwady Basin Management Planning process covers the

following six packages:

1. Surface water modelling;

2. Groundwater and data management;

3. Sediments and geomorphology;

4. Biodiversity and fisheries;

41

5. Sectoral development, macroeconomics and basin pollution assessment; and

6. 3D mapping and local consultations.

The State of the Basin assessment is scheduled to be completed in November 2017. Similarly, the

Stockholm Environment Institute (SEI) and Myanmar Environment Institute (MEI) have been

working to set up an RBO for the Chindwin Basin.

6.8 Land Use Policy

There are no clear guidelines regarding land rights, resettlement and compensation for loss of land

associated with hydropower and development projects. The National Land Use Policy (2015) was

adopted in 2015, but there has been no follow-up in relation to the development of a National Land

Law or strategic framework to implement the principles set out in the policy.

The General Administration Department (GAD) at the township level is responsible for the

acquisition of land under the Land Acquisition Act (1894) when land is required by government. It

acquires land from private owners in exchange for compensation. A major problem with land

acquisition is that there are no private property rights in Myanmar, with all land considered state-

owned. Consequently, the government can legally acquire private land for very low compensation.

Another issue with land acquisition for development projects is the concern (real or perceived) within

parts of government of land speculation. Some government departments fear that on being informed

of the incoming projects, people will buy land from the “real land owners” and subsequently benefit

unfairly from government compensation.

Without clear procedural guidelines and without the empowerment of local governance and local

stakeholders, these two issues will continue to be significant political obstacles for major hydropower

development projects. Although the National Land Use Policy provided guidance to address these

issues, the implementation of its principles through comprehensive laws and institutions is yet to

occur.

6.9 National Planning Instruments

6.9.1 National Comprehensive Development Plan (NCDP)

Under the former USDP government the NCDP was adopted to guide Myanmar’s development over

the long term (2030). It envisions Myanmar as “a developed nation integrated into the global

economy” by the year 2030. To reach that vision, it sets the two long term goals of: (i) building a

growing diversified and sustainable economy, and, (ii) ensuring that growth and development is

inclusive and people centred. Six macro-indicators called “development outcomes” were set to keep

track in realising those two long-term goals (Table 6.4).

Table 6.4: NCDP vision, long-term goals and development outcomes

Vision Long-Term Goals Development Outcomes

Myanmar as “a

developed nation

integrated into

the global

economy” by

2030

To build a growing

diversified and sustainable

economy

Average GDP per capita growth of 7.2% to 2030

FDI inflows of USD 8 billion per annum (by 2021)

GDP potential of USD 180 billion by 2030

To ensure that growth and

development is inclusive and

people centered

GDP per capita USD3,000 by 2030

Improved governance ratings, aligned to Asia

Improved wellbeing of a middle income country

The USDP government used the Framework for Economic and Social Reform (FESR, 2012) to

support the implementation of the NCDP by providing policy priorities to be implemented within the

first three years from 2012-2015. The FESR set priority policy actions that supported the long-term

visions and goals set in NCDP. It identifies “the quick win” policy actions in ten economic areas of

fiscal and tax reform, monetary and financial sector reform, liberalization of trade and investment,

private sector development, health and education, food security and agriculture growth, governance

and transparency, mobile phones and internet, infrastructure, and effective and efficient government.

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6.9.2 National Planning Laws

National Planning Laws were also adopted to project annual growth for each sector and the

state/regions. The new NLD government also published the planned and actual annual growth for the

last fiscal year (2016-2017), indicating that the planning laws will continue to be utilised as an

important legal tool in economic planning and forecasting.

Based the National Planning Laws 2016-2017 and 2017-2018, the GDP of the electricity sector is

projected to grow during the 2017-2018 fiscal year by 4.8% to a total of 853.4 billion Kyats. This

growth rate was anticipated despite a 13.7% sectoral GDP growth in the previous fiscal year (2016-

2017), which exceeded the planned growth of 6.5% (Table 6.5). The contribution of 1.3% to total

GDP from the sector is slightly lower than the contribution for the current year (1.4%). Meanwhile the

energy sector is expected to grow by 3.9%.

Table 6.5: Planned (2017-2018) and actual GDP growth (2016-2017) for key sectors in the SEA

Sectors Planned GDP growth

(2016 - 17)7

Actual GDP growth

(2016 - 17, estimate)

Planned GDP growth

(2017 - 18)8

Agriculture + 5.4% + 0.9% + 4.2%

Livestock and Fisheries + 3.1% + 1.5% + 3.4 %

Forestry -23.0% - 64.8% + 34.1%

Energy +18.8 % -12.7% + 3.9 %

Industry +10.8 % + 9.4% + 11.0%

Electricity + 6.5% +13.7% + 4.8 %

TOTAL +7.8% + 5.7 % + 7.0 %

Privatization across different sectors, including the hydropower sector, will continue to grow in the

next few years, which will need to be carefully managed by the GOM to ensure revenue sharing and

compliance with environmental, water, land use and social protection laws.

6.10 Agriculture, Fisheries and Forestry

Detailed information on planning laws and economic contribution of the agriculture, fisheries and

forestry sectors is included in Chapter 5- Aquatic Ecology and Fisheries and Chapter 6- Economics.

The water-energy-food and forest ecosystems nexus will be explored in the impact assessment phase

of the SEA to assess the development objectives and targets of hydropower with other key water and

land related sectors.

6.10.1 Agriculture

The goals of the National Agriculture Policy (2012) are to:

• Emphasize production and utilization of high-yield and good quality seeds;

• Conduct training and education for farmers and extension staff on advanced agricultural

techniques;

• Implement research and development activities for sustainable agricultural development;

• Protect farmer’s rights and benefits;

• Assist farmers to get fair price for their produce;

• Assist in lowering production costs, increase high quality crop production, developing and

strengthening of markets;

• Encourage transformation from conventional to mechanized agriculture, production of crops

appropriate to climate and extend irrigated areas;

• To undertake renovation and maintenance works on old irrigation, pumping and underground

water systems;

• To support rural development and poverty reduction activities through development of the

agriculture sector;

7 National Planning Law (2016-17) 8 National Planning Law (2017-18)

43

• To encourage local and international investment in the agriculture sector for the development

of advancement of agricultural technology and commercial agricultural production; and

• To justify and amend existing agricultural laws and regulations in line with the current

economic situation.

The draft Agriculture Development Strategy (2016) lists targets for improving sector performance,

including:

• Water use efficiency - increased by 40% in five years;

• Land productivity (GDP/harvested area) - USD 1,200 - increased by 50% in five years; and

• Labor productivity (GDP/ agricultural labor) - USD 1,600 - increased by 50% in five years.

6.10.2 Fisheries

The National Policy on Fisheries Sector (202?) aims to:

• Promote all round development in the fisheries sector;

• Increase fish production for domestic consumption and share the surplus with neighboring

countries;

• Encourage the expansion of marine and freshwater aquaculture; and

• Upgrade the socioeconomic status of the fisheries communities.

The laws pertaining to inland and marine fisheries are:

• Law relating to the fishing rights of foreign fishing vessels (1989);

• Aquaculture Fisheries Law (1989);

• Myanmar Marine Fisheries Law (1990);

• Freshwater Fisheries Law (1991);

• Law amending the law relating to the fishing rights of foreign fishing vessels (1993); and

• Law amending the Myanmar Marine Fisheries Law (1993).

6.10.3 Forestry

The Myanmar Forest Policy (1995), consistent with the forestry principles adopted at the United

Nations (UN) Conference on Environment Development in 1992, has identified the following six

priorities:

• Protection of soil, water, wildlife, biodiversity and environment;

• Sustainable use of forest resources to ensure supply of both tangible and intangible benefits

accrued from the forests for the present and future generations;

• Ensure that basic needs of people for fuel, shelter, food and recreation are guaranteed;

• Efficiency to harness the full economic potential of forest resources in a socio-

environmentally friendly way;

• Participation of the people in the conservation and utilization of the forests; and

• Public awareness of the vital role of forests in the well-being and socio-economic

development of the nation.

The Forest Policy also aims to secure and manage 30% of the total land area under a Permanent

Forest Estate (PFE), which comprises reserved forest and protected public forests. Chapter 4 -

Biodiversity provides detailed analysis on the forest estate, Key Biodiversity Areas (KBAs), protected

areas (PAs) and deforestation in all river basins in Myanmar.

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7 STRUCTURE OF THE BAS ELINE ASSESSMENT

REPORT

The remaining chapters of the SEA are based around the key themes of the SEA as follows:

Chapter 2- Hydropower;

Chapter 3- Geomorphology and Sediment transport;

Chapter 4- Biodiversity;

Chapter 5- Aquatic Ecology and Fisheries;

Chapter 6- Economic Development and Land Use;

Chapter 7- Social and Livelihoods; and

Chapter 8- Conflict.

The draft Baseline Assessment Report was released as separate chapters to the AG, EGs and public

for review and comment from 8 June to 20 July 2017.

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IFC Myanmar Country Office:

No. 57, Pyay Road,

6 ½ miles, Hlaing Township

Yangon

www.ifc.org/hydroadvisory